The investigation into the multi-crore fraud involving Shivanand Neelannavar, managing director of Shivam Associates, has uncovered startling revelations. Neelannavar, the prime accused in an alleged Rs 4,500 crore deposit scam, is reported to have diverted funds collected from the public not only for financial dealings but also to pursue his ambitions in the film industry.
Funds Used for Film Production
Investigating agencies have found that Neelannavar, accused of cheating over 35,000 investors, harbored aspirations of establishing himself in the Kannada film industry as a producer. As part of this ambition, he reportedly spent lavishly to bring popular actress Sunny Leone for a special item song in the 2023 Kannada film Champion, which he produced.
According to a previous statement by Neelannavar during the movie's release, Sunny Leone was paid around Rs 1 crore to feature in the song “Dingara Billi Naanu”. While the song generated considerable buzz, the movie failed at the box office. Sunny Leone's general going rate for a special dance number ranges between Rs 2 crore to Rs 3 crore per song.
No Financial Accountability
Investigating officials say that Neelannavar used public money indiscriminately to fund such ventures without financial accountability. Once aspiring to emerge as a prominent producer in Sandalwood, he is now lodged in jail facing serious charges of large-scale financial fraud, sparking widespread outrage across the state.
KRV Leader Under CID Scanner
R Abhilash, Belagavi district president of Karnataka Rakshana Vedike (Praveen Shetty faction), has come under the CID scanner for allegedly receiving a costly car as a gift from Shivanand Neelannavar. CID has issued a notice to Abhilash for inquiry and directed him to surrender the vehicle as long as the investigations are ongoing.
Neelannavar is said to have gifted the car in December 2025, after Abhilash organized the Belagavi Utsav at Sardar’s High School ground under his sponsorship. Abhilash had shared photos of receiving the car on his social media but deleted the posts after raids on Shivam Associates' offices.
